California Vehicle Lien Sales in 2026

Who can hold a lien sale, and when the lien starts

A person who repairs, provides materials for, tows or stores a vehicle and is not paid for those services has a lien on the vehicle, per the DMV's lien sales page. The lien can be satisfied by a court judgment or by a lien sale conducted under the California Civil Code, and the lienholder must have physical possession of the vehicle to conduct one. The lien becomes effective when the registered owner receives a written statement of charges for completed work; for a vehicle impounded by a public agency or from private property, the lien begins when the vehicle is towed. Salvage pools and charitable organizations are not allowed to conduct lien sales to obtain title, and a repair shop cannot use a lien sale to cover repair costs unless it is registered with the Department of Consumer Affairs' Bureau of Automotive Repair, which the DMV says every California auto repair shop must be. A lienholder cannot conduct a lien sale on a vehicle in which it has a monetary interest, so a legal owner who has gone out of business is handled through the DMV's Financial Institution Locator instead.

The $4,000 line and the forms

Before starting, the lienholder determines whether the vehicle's value is over $4,000 or $4,000 or less, using the current market value of similar vehicles, and follows the DMV's guide for that value. The forms the DMV lists for lienholders: the Notice of Pending Lien Sale for Vehicle Valued $4000 or Less (REG 668) and the Certification of Lien Sale for Vehicle Valued $4000 or Less (REG 168A); for a vehicle valued over $4,000, the Application for Authorization for Lien Sale (REG 656), the Notice of Pending Lien Sale of Vehicle Valued over $4000 or From a Self-Service Storage Facility (REG 280) and the Certification of Lien Sale (REG 168); and the Application for Authorization to Continue Lien Sale After Unsuccessful Service (REG 659). The DMV says incomplete or illegible applications are rejected, and names the usual gaps: the full VIN, plate or vehicle description, the signature and date, and the countersignature for a business. On the DMV's fee schedule a lien sale authorization is $5. A lienholder with a stop on the vehicle record is told to contact the Lien Sale Unit at (916) 657-7617.

The notice of pending lien sale

The notice tells the people with an interest in the vehicle that a lien sale is pending, so the business can recover the money owed for repairs, towing or storage. The DMV says it must be sent to the registered and legal owners of record, to any person identified as a buyer on a Notice of Transfer and Release of Liability filed with the DMV, and to any person the lienholder knows to have an interest in the vehicle. A seller receives it because DMV records still show an interest: a release of liability filed after a sale stays on file, but the vehicle stays in the seller's name until the buyer changes the ownership at the DMV. The DMV adds that once the purchaser took possession and a properly completed release was submitted, liability for parking violations, traffic violations and other legal matters after the date of sale is the purchaser's, and that a seller who never filed one may file it now.

Opposing a sale, and what the lienholder does then

An owner has a 10-day window to oppose the sale. After it closes, the DMV says the matter is civil: owners often work with the lienholder to pay all fees due and retrieve the vehicle before the sale, do nothing and let the vehicle be sold, or file a court action to prevent the sale when they believe the lienholder is not entitled to the money, with the warning that a court may find the money and court fees owed. When a sale is opposed, the DMV sends the lienholder a denial letter, and the sale cannot proceed unless one of three things happens: the person who opposed it signs the Release of Interest section at the bottom of the denial letter and the lienholder submits the original; the lienholder files a court action within 30 days of the date the DMV's notice was mailed, wins a judgment that is not paid within five days of becoming final, and submits the judgment with the plaintiff's claim and a Statement of Facts (REG 256) stating that a judgment was received in the lienholder's favor, at least 35 days have passed and no money was received; or the lienholder could not serve the declarant under Civil Code sections 3071(e) or 3072(e) and submits the REG 659 with the unopened certified letter containing the court documents or proof of unsuccessful personal service. When the Lien Sale Unit receives one of these, the DMV authorizes the lienholder to continue and notifies the person who opposed the sale.

Getting the vehicle back and clearing the lien

An owner who picks up the vehicle before the sale can find the lien still on the DMV record. It is removed with proof of possession: for a registered owner, a vehicle verification or proof of payment on the lienholder's letterhead; for a legal owner, a Certificate of Repossession. A vehicle verification must be completed by an authorized DMV representative, a California licensed vehicle verifier, an authorized auto club employee or a peace officer trained to perform them. The proof goes by fax to (916) 657-8763, by mail to PO Box 932317, Sacramento, CA 94232, or in person at a field office. A buyer at a lien sale who lost the documents is told to ask the seller for copies and, failing that, to contact the Lien Sale Unit.

Vehicles outside California

A lien sale cannot be conducted on a vehicle located out of state; a California plated vehicle held in another state follows that state's lien sale laws. The names and addresses of the registered and legal owners can be obtained with a Request for Record Information (INF 70); an out-of-state requester must cite its state statute by code name and section number and attach a copy, and cannot use the Registration Information Request for Lien Sale (INF 1126), which is for California requesters only. The DMV's Information Release Unit answers at (916) 657-8098. How the DMV releases records, and the notice it must send to the person whose record is requested, is on the driving and vehicle record guide.

Questions about California vehicle lien sales

Who can conduct a lien sale?

A person who repaired, provided materials for, towed or stored a vehicle and was not paid, and who has physical possession of it, per the DMV. Salvage pools and charitable organizations cannot conduct lien sales to obtain title, and a repair shop must be registered with the Bureau of Automotive Repair.

Why did I get a notice of pending lien sale for a car I sold?

Because DMV records still show you with an interest in it. A release of liability you filed is on file, but only the buyer's transfer removes your name; the DMV says to file one now if you never did, to protect yourself from liability after the date of sale.

What happens if the 10-day window to oppose has passed?

The DMV says it becomes a civil matter between the parties: owners commonly pay the lienholder's fees to retrieve the vehicle before the sale, let the vehicle be sold, or file a court action to prevent the sale if the lienholder is not entitled to the money; a court may decide you owe the money and court fees.

I got the vehicle back but the lien is still on the record. How is it removed?

With proof of possession to the DMV: for a registered owner, a vehicle verification or proof of payment on the lienholder's letterhead; for a legal owner, a Certificate of Repossession. Proof goes by fax to (916) 657-8763, by mail to PO Box 932317, Sacramento, CA 94232, or to a field office.

Can I run a lien sale on a vehicle whose legal owner went out of business?

No. The DMV says you cannot conduct a lien sale on a vehicle in which you have a monetary interest; its Financial Institution Locator explains how to find a closed legal owner and what to do when no information is available.

Who answers lien sale questions at the DMV?

The Lien Sale Unit at (916) 657-7617, which also handles vehicles with a stop on the record and lost lien sale documents.